Shake Shack: Another Tasty Quarter on the Way?

Shake Shack is expected to report fourth-quarter earnings March 7 as McDonald’s turns up the heat. Will McDonald’s eat Shake Shack’s lunch?

Shake Shack (SHAK) is expected to report fourth quarter fiscal 2015 on March 7. Investors are expecting another strong quarter, but McDonald's (MCD) is turning up the heat. Will McDonald's eat Shake Shack's lunch?

While investors are excited about Shake Shack's growth prospects, McDonald's has turned up the heat. In fact, in the last year, Shake Shack's shares are down 6%, while those of McDonald's are up almost 18%. Last week, shares of Jack-in-the-Box (JACK) fell 16% when the company said its same store sales were crushed when McDonald's launched all-day breakfast back in October. JACK's system-wide comps were a disappointing 1.4%.

JACK isn't the only operator to blame increasing competition from McDonald's for a weak quarter. Red Robin (RRGB) posted a decline in traffic and a 1.3% drop in same store sales along with a 4.6% decline in guest traffic. Red Robin management cited tough competition in its category and the lack of excitement in its menu line-up.

McDonald's isn't the only burger joint that's cooking. Burger King, which is now part of Restaurant Brands International (QSR) , reported a 5.4% increase in same store sales for 2015. Wendy's (WEN) and Sonic (SONC) just reported same store sales growth of 4.9% and 5.3%, respectively. It's a bad time to be a cow; Americans can't eat enough burgers.